Items Tagged with 'Yan Chang'


  • Study: Mortgage Points Typically Don't Pay Off

    Home buyers tend to purchase too many points when selecting a mortgage and end up paying more than they would have with no points and a higher interest rate, according to a new research report co-authored by a professor at Penn State's Smeal College of Business. Abdullah Yavas, Elliott professor of business administration at Smeal, and Yan Chang, senior economist at Freddie Mac, found that home buyers who purchased points, on average, tended to pay off their mortgages about 37.5 months too early. In other words, the average mortgagor with points ended up defaulting, moving, or refinancing more than three years before reaching the break-even point from the purchase of the points.
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